Reducing motoring costs is easy if you follow a few steps successfully. One of them is to pick a model of car with cheapest insurance rates. There are a number of reasons why some are more favored by carriers than others and they are laid out below in detail. Understanding these variables can help you find the vehicles that will land you low premiums and save money for years.
Why Are Some Autos Cheaper to Insure than Others?
Here are 10 reasons why you may pay less with some vehicles and why to avoid others;
- At the basis of most underwriting algorithms is the underlying costs. This is based on the claim history of the vehicle model chosen. History of the similar cars in the range would affect this pricing as well.
- Average cost of these claims would be influential as well. Hence, both the number and size of damages would be looked at while determining the best automobiles for affordable insurance.
- Another area to consider is the injuries sustained by the occupants of certain class of automobiles. Naturally, safer cars will protect its occupants better. As a result, companies would end up paying less for injury claims and charge less premiums. Motorists would achieve the highest discounts if they pay attention to these points when they are choosing a car for a teenager.
For example, if a specific model within the sedan category has 50% more serious injury claims than another sedan, the one with the higher numbers will cost more in premiums. This is simply because the underwriters have to account for the extra medical expenses that will be paid out.
That is why safety rating of each model becomes very important. There are a few new features that are designed to reduce accidents and injuries. They include forward collision warning, lane departure warning, auto-braking capability and rear camera and blind spot monitoring. Cars are appraised by the NHTSA and the IIHS for safety. If an automobile score highly, most often it will have a lower claim rate and therefore they are the best autos for cheap insurance premiums.
- Repair expenditure is another factor. Some autos are more economical to repair than others due to widely available and reasonably priced parts and mechanical expertise. It is only fair that these are the cars with preferred ratings because they cost less to fix.
- It is fair to say that insurance policies for commonly sold vehicles are going to be more affordable. One of the main reasons for it is that companies have to be competitively priced when they are targeting large portion of population in order to increase the volume of their business. It is a simple business practice in which the prices go down when the volume is up. In other words, smaller profit margins will be compensated by higher numbers of sales.
- Some of the reasons behind high quotes are more obvious. Generally exotic sports car coverage is more expensive. Everyone can appreciate the fact that an average driver is likely to crash them. You need certain level of experience to handle powerful automobiles because they take off faster, reach to higher speed quicker and encourage the driver to test the limits on the roads. Furthermore, the collisions they are involved can be a lot more costly due to high-speed crashes and their custom parts.
- In the same way, cars with smaller engines would be cheaper to insure since they cannot go fast and easier to handle by most drivers.
- Family focused cars with smaller engines are typically a lot favorable than sports cars or large engine vehicles. One of the main reasons for more affordable premiums is that family vehicles are driven more responsibly. So, what types of motorists choose certain autos is very important. A policy for a vehicle that is a firm favorite with mums like minivans would be priced much more competitively. They usually have children in the car with them that makes them extra careful and watch out their speed. In addition, they only travel locally to school, supermarket and work. You can hardly imagine a teenager taking out mum’s minivan for a joyride. That is why it is not surprising to see these vehicles with cheap insurance rates.
- Some automobiles can attract higher quotes because they invite more thieves. Straightaway, you may think that expensive, high-end cars are the main targets of auto thieves. But this is not usually the case. Thieves go for vehicles that are easy to break-in and drive away. All the security and tracking features on the high value automobiles can be enough to deter thieves. Consequentially this will reduce the theft risk and coverage costs.
- The price tag of the automobile is important too. When a vehicle is totalled or stolen the carrier will have to pay its open market value to the policyholder.
The ranges of vehicles are so wide from compact to sedan to minivan or SUV? There are literally thousands of models from dozens of automakers. Therefore, the easiest thing to do may be to get a few quotations right here and find out exactly how much you would pay.
Top 10 Cheapest Vehicles to Insure
It is time to have a look at the list. According to insure.com data, here are the automobiles with lowest insurance rates on average;
- Jeep Wrangler Sport 4WD – $1,134
- Jeep Patriot Sport 2WD – $1,136
- Honda CR-V LX 4WD – $1,160
- Dodge Grand Caravan SEPlus – $1,162
- Honda Odyssey LX – $1,163
- Jeep Compass Sport 2WD – $1,164
- Subaru Outback 2.5i AWD – $1,176
- Ford Edge SE 2WD – $1,176
- Smart Fortwo Pure Coupe – $1,186
- Ford Escape S 2WD – $1,190
It is a surprise that Jeep Wrangler Sport tops the list and two other jeeps, Patriot Sport and Compass Sport, are in the top 10 list. It is probably a lot to do with who is driving these cars. When they are mostly used by responsible, cautions, established mums and dads it is no surprise that they don’t have many accidents and hence have low rates.
The list appears to be dominated by off-roads, crossovers and minivans. They seem to take over trusted family sedan. However, top 10 list is only a tiny cut of the picture. This doesn’t mean that other sensible cars like many well-known sedans aren’t going to get you the best deals. There are plenty cars that will deliver you handsome savings because of their safety features, engine sizes, reliability, budget parts, crash and injury records.
One thing you need to remember is that these premiums are average. Where you live and how good a driver you are will affect the quotes you receive.
Everyone starts with some sort of an idea on the type of car they want to own. Knowing the cheapest autos to insure can be real handy during shopping. Always remember that there is a good reason why carriers are happy to offer large discounts for some automobiles. They are generally safe, hard to steal and repairs are economical. To be sure about pricing you should always get at least three quotes on two models you are interested in buying. That way you can get the absolute best value.